Monthly Archives: August 2017

Gilbert Hyatt (Mostly) Wins at Board of Equalization; What This Teaches Us About Moving from California

Posted on August 31, 2017 by Russ

Remember Gilbert Hyatt? He’s the microprocessor inventor who made a fortune and then moved to no-tax Nevada from high-tax California, but California’s Franchise Tax Board (FTB) said didn’t move. The case has gotten to the US Supreme Court twice, and … Continue reading →

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IRS e-Services Outages the Next Two Weekends

Posted on August 30, 2017 by Russ

The IRS announced today that they will be conducting their normal Labor Day maintenance this coming weekend. Most IRS e-Services applications will be down beginning Saturday, September 2nd at 8pm EDT, with normal operations scheduled to resume Tuesday, September 5th … Continue reading →

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The Law Isn’t Fair, But You Have to Pay the Tax

Posted on August 29, 2017 by Russ

A California couple received an Advance Premium Tax Credit (part of the “Affordable Care Act,” aka ObamaCare). Through bureaucratic errors at Covered California, they’re unable to change their plan once they’re both employed to stop the credit, nor do they … Continue reading →

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IRS Gives Tax Relief to Victims of Hurricane Harvey

Posted on August 28, 2017 by Russ

The IRS announced today that they are granting residents of parts of Texas additional time to file certain individual and business tax returns and make some payments; the extension is until January 31, 2018. This relief currently applies for 18 … Continue reading →

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The IRS Is Coming! The IRS is Coming!

Posted on August 24, 2017 by Russ

As first reported by Bob McKenzie this morning, the IRS has purchased software to help them identify Bitcoin transactions. The IRS is reportedly using a product from Chainalysis, Inc., a New York-based supplier of products used to analyze Bitcoin activity. … Continue reading →

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Taxes When a Cryptocurrency Splits Into Two

Posted on August 21, 2017 by Russ

The IRS ruled that cryptocurrencies are treated as property (like stocks and bonds). What happens when a cryptocurrency splits into two separate cryptocurrencies? Let’s start with the analogous situation with a stock. Suppose Acme Industries, Inc. spins off its subsidiary, … Continue reading →

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On Tulips and Bitcoins

Posted on August 20, 2017 by Russ

When I was in junior high school, I remember being taught about the 17th century tulip mania. Tulips in 1637 cost more than a house! That was a bubble (though some economists think there may have been rational explanations, let’s … Continue reading →

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IRS E-Services Outage Postponed…Again

Posted on August 16, 2017 by Russ

Back in June the IRS was going to do a major update of their E-Services (what tax professionals, software developers, and return transmitters use to access IRS computer systems). That update was postponed. Last month the IRS announced that the … Continue reading →

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Did I Prepare 5% of the Tax Returns with Bitcoin in 2015?

Posted on August 13, 2017 by Russ

The IRS is attempting to force Coinbase to disgorge a list of its customers who have traded Bitcoins. Back in March, an IRS agent, as part of attempting to enforce its summons against Coinbase, stated that there were only 802 … Continue reading →

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